This form makes certain that you subtract all of a company's variable costs from its revenues when computing the contribution margin. Both the contribution margin in dollars and the contribution margin ratio are included on this easy-to-follow form.
Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. Read more about the author.